Aston Martin Lagonda (LSE:AML) inventory stands proud like a sore thumb within the FTSE 250. And the rationale the thumb is sore is as a result of the share worth has been hammered.
On this respect, Aston Martin has been remarkably constant. It’s down over three months (-25%), six months (-42%), one yr (-53%), three years (-90%), and 5 years (-95%). Because the 2018 IPO, it’s misplaced 99% of its worth!
However with the posh carmaker now exhibiting real progress on its newest turnaround efforts, is the inventory now a screaming discount at simply over 35p?
What progress?
Aston Martin has suffered from persistent operational losses, manufacturing delays, revenue warnings, and heavy dilution from a number of emergency capital raises. Extra not too long ago, US tariffs and the Center East battle have added to the challenges.
Nonetheless, within the first half of 2026, the loss-making agency did make noticeable progress. Wholesale volumes rose 21%, together with 43% in Q2, driving income up 38% to £627m. Gross revenue jumped 68% to £213m, pushing the gross margin to 33.8% (from 27.9%).
Notably, Q2’s free money outflow narrowed considerably to £81m (from £201m the yr earlier than). And Aston Martin says free money outflow is anticipated to “materially enhance“ in FY26. For context, the outflow in FY25 was £410m.
This monetary enchancment was pushed by 220 deliveries of the high-margin Valhalla supercars. These have bought like hotcakes whereas overwhelmingly getting optimistic evaluations from motoring journalists.
We just like the Valhalla…Total, it’s a wickedly fascinating automobile and appears fairly beautiful amongst regular visitors…Aston Martin is on a roll currently, however the Valhalla is subsequent degree.
High Gear.
Digging deeper
Talking of the following degree although, the monetary well being drops off considerably as we transfer our eyes down the numbers. As a result of regardless of considerably larger revenues and gross revenue, the pre-tax loss widened to £154m. And worryingly, internet debt rose 12% to £1.54bn.
The irony is that the Aston Martin model hasn’t taken as large a success as another struggling FTSE 250 names like Dr Martens. Actually, it largely stays top-notch, and the agency’s new fashions are sensational.
There are latest YouTube movies exhibiting Gordon Ramsay driving his new Valhalla round Central London. It’s extra photographed than the celeb chef inside!
Importantly, well-heeled prospects are spending rising quantities on high-margin personalisation choices (bespoke paintwork, hand-stitched interiors, and so forth). In H1, buyer personalisation accounted for roughly 17% of core income.
This has additionally been an essential driver of Ferrari‘s progress in recent times, so that is good to see.
Nonetheless, the large debt and curiosity funds put me off, regardless of the undoubtedly spectacular work being carried out in troublesome circumstances by CEO Adrian Hallmark and the crew.
Is Aston Martin value a punt?
Generally, after I watch an previous James Bond film and the cool spy is tearing about in his DB5, I’m tempted to succeed in for my cellphone and snap up a couple of shares.
Why? Simply in case there’s a Hollywood-style turnaround, which is feasible if money flows flip optimistic and demand for Aston Martin’s special-model sportscars stays robust.
Then the Bond movie ends, actuality returns, and after I give it some thought, I see much better and safer alternatives for my cash elsewhere within the FTSE 250.
I simply hope I don’t miss out on the turnaround of the century…
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Ben McPoland owns shares of Ferrari.
